This commentary will focus on the first 60-90 minutes after the Opening Bell. However, our strategies can and will provide setups the entire trading day.
Overnight price action consolidated inside the prior day’s range slightly above the opening bell. Notice price action starting to show signs of weakness by crossing below the ascending trendline.
From a birds-eye view, price action previously completed an entire market cycle and we saw the phase 4 transition to the beginning of a phase 1 once we no longer saw lower highs and lower lows. After a couple days of consolidation and price action breaking to the upside and crossing above several swing pivot highs, we see that price action formed a W pattern (i.e., double bottom) and retraced to the 50% levels of
After a couple days of consolidation and price action breaking to the upside and crossing above several swing pivot highs, we see that price action formed a W pattern (i.e., double bottom) and retraced to the 50% levels of the phase 4 down move. With no continuation of momentum to the upside, we may have a failed breakout/transition to a phase 2. This lends more weight-of-evidence to a continuation of a phase 4.
Pre-market Economic news and reports continues to be light and have a minimal today.
Pre-market price action on the 5-minute charts showing early signs of weakness with price action already crossing below the prior day’s low and giving us early indication of the ES 5 Minute Complete Strategy. Notice the lower highs and lower lows already heading into the opening bell.
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Notice price action never closed back above the 20-ma. With price action clearly below the opening bell, below the prior day’s low and several lower highs and lower lows on the 1-minute chart, and at intraday lows, we increased our position size and took an aggressive SHORT. Price action immediately went in our favor and we took 2+ points profits.